Strategies and determinants of corporate support to the arts: Insights from the Italian context

Abstract

Drawing on the agency theory and the stakeholder theory, this study assesses strategies for corporate support to the arts and analyzes their organizational and contextual determinants. Based on an original dataset of Italian companies benefitting from a tax incentive program, we observe the following findings: smaller companies are more likely to contribute to the maintenance of the artistic heritage of the local area where they are located, with the aim of sustaining the cultural capital of their community (local legacy strategy); larger companies are more likely to support arts and culture as part of their social responsibility strategy (rich patronage strategy); medium-sized service companies are more likely to contribute a small amount of money to cultural and artistic events with a national appeal, with the aim of enhancing their reputation (Market-oriented strategy). Our research provides useful insights to artistic and cultural organizations for designing their fundraising activities and to policymakers interested in stimulating private donations for the preservation of a country's cultural heritage.